State taxes may increase in 2013

EASTHAMPTON, Mass. (WWLP) - Massachusetts residents have enjoyed three years with no new taxes or fees, but we may be asked to pay a little extra in 2013.

In many ways, Massachusetts is still recovering from the recession.

Small business owners say their customers are still cautious.

Jeff Doyle, the Owner of the Silver Spoon in Easthampton, said, “Some are spending less, some aren't coming in as often as they used to."

To help the recovery state lawmakers pledged no new taxes or fees, but with the start of a new session, that pledge may end.

Doyle says that’s understandable, “Every little bit hurts but we all get something from the state one way or another so we have to pay for it." 

Senate President Therese Murray says there are gaps in funding for transportation, water quality improvements and wastewater treatment.

State lawmakers are also concerned about funding cuts on the federal level.

Ben Abbott of Easthampton said, “There are services we rely on and we clearly have to pay for them it's not my favorite thing to see, but I'd rather see a little income tax increase than see property and sales taxes keep going up like they have been, that's the thing that is really hitting people who don't have any money."  

While some taxpayers understand of the need for more revenue, others say they simply can't afford to pay more.

Lorraine Zalesky of Northampton is on a fixed income.

She told 22News, “I just got an increase in my social security five whole dollars and that isn't much, it really would be difficult for me."

On top of funding issues, there is also a $540 million gap between anticipated revenues and spending in the fiscal 2013 budget.

This early in the session, there are still no concrete plans on how taxes may be increased.